California's Not Too Friendly To Small Biz - Small Index Survival Index 2001, United States - Brief Article

California CPA, Oct, 2001

California has dropped from 39th to 44th on the list of small-business-friendly states, according to research conducted by the Washington D.C.-based Small Business Survival Committee.

The Small Business Survival Index 2001 examines 17 major government costs impacting small businesses and entrepreneurs such as taxes, electricity costs, workers' compensation costs, crime rates, number of bureaucrats, tax limitation status and state minimum wages.

A not too-surprising reason for the decline is the state's electricity crisis, pushing California down the pipeline from 16th to 41st in terms of electric utility costs. Also, California has the highest capital-gains tax rate and second-highest gasoline tax.

The most entrepreneur-friendly states according to the index include: Nevada, South Dakota, Washington, Wyoming, Florida and Texas. Least friendly: New Jersey, Montana, Iowa, Ohio, West Virginia, Vermont, New York and California.

For a copy of the Small Business Survival Index 2001, visit SBSC's Web site at www.sbsc.org.